Serbia: Extra fee for cash-on-delivery online purchases sparks debate

Consumers in Serbia are encountering an additional charge when opting for cash-on-delivery for online purchases, a fee distinct from standard shipping costs. This "cash-on-delivery fee," reported to be around 200 dinars, is applied exclusively when customers pay in cash upon receiving their order. In contrast, payments made online via card, instant transfers, or bank slips only involve the shipping cost, without this extra charge.

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The fee for cash-on-delivery in the amount of 200 dinars represents a standard cost for processing cash payments, which is clearly displayed during the purchase process on the Ananas platform.

Several online retailers, including the "Ananas" platform, are implementing this surcharge. Ananas E-Commerce explained that the 200 dinar fee represents a standard cost for processing cash payments, clearly displayed during the purchase process. They stated that when a customer pays cash-on-delivery, the courier service handles the cash, and the associated manipulation and processing incur additional expenses. "In line with this, courier services charge extra for this service, which is why cash-on-delivery is more expensive compared to electronic payment methods," the company noted.

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When an order is paid for cash-on-delivery, the courier service takes the cash from the buyer, and the manipulation and processing of cash involve additional costs.

This practice is described as a common occurrence in e-commerce. Customers seeking to avoid the fee are advised to utilize electronic payment options available on the platform, such as payment cards or IPS QR codes. Retailers in other sectors, including fashion brands, also reportedly charge additional, sometimes higher, fees for cash-on-delivery services.

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In line with this, courier services charge extra for this service, which is why cash-on-delivery is more expensive compared to electronic payment methods.

The National Bank of Serbia (NBS) addressed the practice, clarifying that retailers define this fee as an additional delivery or logistics cost specific to the cash-on-delivery method, rather than a change in the item's price. The NBS explained that the involvement of courier services in handling cash, collecting it, securing it, and transferring it back to the retailer, along with the courier company's own fee for this service (known as "otkupnina"), creates extra operational costs and risks for both the retailer and the courier. The NBS also noted that the rate of returned packages tends to be significantly higher for cash-on-delivery orders compared to pre-paid ones.

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When you choose cash-on-delivery, the courier service is involved, which has its own price list for services. This process incurs additional operational costs and risks for the retailer and the courier.